A slew of newly extended tax cuts signed into law Friday will offer some relief to consumers stressed by a tough economy, Southland experts said.

Most of the cuts have been around since the early 2000s, but they were set to expire Jan. 1.

“This means that we’ll continue to have more money in our pockets, and it may even keep the savings rate above 5 percent,” said Brad Kemp, director of regional research for Beacon Economics in Los Angeles.

“We were looking at a slowdown in early 2011 if these cuts weren’t extended. At this point, all that matters is that they extended the cuts. In the short term, it’s a great thing,” Kemp said.

It won’t put the economy in high gear, but “it’ll make it run smoother,” he added.

The new law preserves a host of reductions, ranging from lower rates for the rich, middle class and working poor to a $1,000-per-child tax credit, tax breaks for college students and lower taxes on capital gains and dividends.

A new one-year tax cut will reduce most workers’ Social Security payroll taxes by nearly a third next year, from 6.2 percent to 4.2 percent.

A worker making $50,000 would save $1,000, and someone earning $100,000 would save $2,000.

Sven Arndt, a professor of economics at Claremont McKenna College, said the legislation makes sense in light of the dire state of the nation’s economy.

“In essence, people would have had a tax increase without this. So given the shape of the economy, it’s a good thing,” he said. “Most economists would say you don’t raise taxes in a sluggish economy.”

And few would deny that Southern California is in a sluggish economy.

Figures released Friday by the state Employment Development Department reveal that Los Angeles County’s jobless rate jumped to 12.9 percent in November, up from 12.6 percent the previous month and 12.3 percent a year earlier.

The tax cuts might not be a panacea, but they will provide consumers with money they otherwise wouldn’t have had.

“The question is, how will people spend that money?” Kemp said. “We’ve already seen that consumers are spending a little more, and when they spend more, imports start to rise. Our hope is that they will do something local with it, like buying a product that’s manufactured locally or made in the U.S. But even if we stimulate the global economy that will still benefit us.”

Julie Lawson, who owns the Pasadena marketing firm, Thought Bubble Creative, said Friday’s tax bill is certainly welcome. But in the scheme of things, it won’t make a lot of difference for her.

“This is just like a small portion,” she said. “When you’re living in California and you are a business owner state taxes are a pretty big thing, not to mention the insurance you have to carry.”

Lawson, who works with a partner, said her business doesn’t have any other employees, yet she’s still required to carry workers’ compensation insurance as she sometimes uses freelancers.

“You have a small business and the next thing you know … you’re spending $20,000,” she said.

Arndt said the tax cuts look good when viewed in the short-term. But the long-term implications are more troubling.

“In the short term we inject more spending into the economy, but in the long run it raises all kinds of fears about increased indebtedness,” he said.

The tax bill comes with a cost of $858 billion over two years.

“The Fed keeps saying they’ll know when to do their exit strategy, but we have to face the long run – and that’s uncertainty,” Arndt said. “I’d say short-run good, long-run bad.”

Kevin Smith handles business news and editing for the Southern California News Group, which includes 11 newspapers, websites and social media channels. He covers everything from employment, technology and housing to retail, corporate mergers and business-based apps. Kevin often writes stories that highlight the local impact of trends occurring nationwide. And the focus is always to shed light on why those issues matter to readers in Southern California.

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